Mumbai (Maharashtra) [India], May 11 (ANI): Grey market premium of Life Insurance Corporation (LIC) shares turned negative on Wednesday indicating that the company may list on the stock exchanges below its issue price.

The recent volatility has led to a sharp drop in the grey market premium of LIC shares. At its peak, the grey market premium of LIC shares stood at Rs 95 per share. This was before the IPO opened for public subscription.

The initial public offering of LIC has been subscribed 2.95 times. The IPO opened for public subscription on May 4 and closed on May 9.

During the IPO subscription period, LIC shares enjoyed a premium in the range of Rs 8 to Rs 12 per share in the grey market.

Wednesday's grey market data showed that the LIC shares would list Rs 15 below its issue price. However, policyholders and employees would still make a profit as they have got discounts.

The country's largest insurer LIC has set its price band for the Initial Public Offer (IPO) at Rs 902 to Rs 949 per equity share. As the IPO is fully subscribed, the issue price stands at Rs 949 per share.

Policyholders have received a discount of Rs 60 per equity share, while retail investors and employees have been offered a discount of Rs 45 on each share.

The share allotment of LIC is scheduled to be done on May 12 and the country's largest insurer will be listed on the stock exchange on May 17. (ANI)